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Example 1: You're financing a new car purchase with a loan from an institution
Example 1:
Example 1:
Example 1:
that requires 15% interest compounded monthly over the 4-year term of the loan. If
you can make payments of $150 at the end of each month and your down
payment will be $1,500, what is the maximum price you can pay for the car ?
(Assume the purchase date is one month prior to the date of the first payment.)
Keystrokes
Keystrokes
Keystrokes
Keystrokes
fCLEARG
4gA
15gC
150ÞP
gÂ
$
1500+
Example 2: A development company would like to purchase a group of
Example 2:
Example 2:
Example 2:
condominiums with an annual net cash flow of $17,500. The expected holding
period is 5 years, and the estimated selling price at that time is $540,000.
Calculate the maximum amount the company can pay for the condominiums in
order to realize at least a 12% annual yield.
Section 3: Basic Fin
Section 3:
Basic Financial Functions
Section 3:
Section 3:
Basic Fin
Basic Fin
Display
Display
Display
Display
48.00
Calculates and stores
1.25
Calculates and stores
–150.00
Stores
paid out)
–150.00
Sets payment mode to End.
5,389.72
Maximum amount of loan.
6,889.72
Maximum purchase price.
ancial Functions
ancial Functions
ancial Functions
n.
i.
PMT
(with minus sign for cash
.
45
45
45
45
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